Seed body moots export policy, promotion council

The federation also called for restoring the 200% income tax deduction under Section 35, (2AB of the Income Tax Act, 1961) for in-house research and development (R&D) expenditure in seed industry.

The Federation of Seed Industry of India (FSII) has requested the central government for a national policy for exports to ensure a smooth process between central government, state governments, Genetic Engineering Appraisal Committee (GEAC) and ports.

A special cell under the ministry of agriculture should be formed to deal with export promotion and facilitation such as efficient disposal of export and import permits, among others. The association has also made a plea for creating a Seed Export Promotion Council.

“To make India an export hub, FSII recommends that a conducive policy support should be provided by the government. For instance, varieties such as custom production of both GM and non-GM seeds and production of export-oriented seeds should be exempted from registration.

However, registration should be mandatory for seed produced for both domestic and export markets. Export of seed produced from India should be freely allowed without any delays and there should be time bound approvals from National Biodiversity Authority (NBA) for export of these Indian varieties,” Shivendra Bajaj, executive director, FSII, said in a representation to the government.

A national policy on seed exports should be developed for a smooth process between central government, state governments, NBA, Genetic Engineering Appraisal Committee (GEAC) and ports. A special cell under the ministry of agriculture should be formed to deal with export promotion and facilitation such as efficient disposal of export and import permits. It is also crucial to create a Seed Export Promotion Council with representatives from government, states, industry, scientists and other stakeholders. Export zones with adequate infrastructure should be set up closer to dry ports, where export-oriented processing and packing facilities can be set up by the industry. A dry port facility for quick movement of seeds should be built closer to the production centres such as Bengaluru, Coimbatore, Hyderabad, Aurangabad and Ahmedabad.

The federation also called for restoring the 200% income tax deduction under Section 35, (2AB of the Income Tax Act, 1961) for in-house research and development (R&D) expenditure in seed industry. The income tax deduction for in-house R&D has been reducing over the last few years. Through an amendment as per Finance Act 2016, the weighted deduction was reduced to 150% effective from April 1, 2017 through March 31, 2020 and it indicated a further reduction to 100% from April 1, 2020.

The Act applies to eligible companies engaged in the business of biotechnology or in any business of manufacture or production of any article or thing that incurs any expenditure on scientific research excluding the cost of land on in-house R&D facility as approved by the Department of Scientific and Industrial Research (DSIR).

“As compared to developed economies, R&D investment in India is very low and stands at around 0.7% of GDP. It cannot be ignored that R&D is critical for new technology development, innovations and to achieve the goal of $5 trillion economy. The government will have to encourage higher R&D investment to address emerging challenges of climate change, stagnant yields, increase food production and nutrition needs of the country.”

Countries like Chile, Argentina and South Africa dominate the global seed trade as they have positioned themselves as suppliers of reliable quality of seeds. India too has a well-developed seed industry, varied agro-climatic conditions, seed production expertise and the necessary infrastructure which can make India a global seed export hub. Currently, exports from India is about Rs 1,000 crore while the global seed trade is about Rs 1 lakh crore. By 2028, India can aim for at least 10% share of this trade, which is approximately RS 10,000 crore.